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Oil prices soared three years after Opec and its allies boycotted the by-elections, with Saudi Arabia, Russia and the UAE vying for unity.
Opec + oil workers are due to resume Monday later failure in order to reach an agreement at the end of last week, the UAE is concerned with what it believes is a very low level and is neglecting its manufacturing capacity.
But with two bilateral negotiations that could not resolve the issue and get one idea before the meeting, the whole meeting was resolved.
The meeting has “failed”, said Mohammed Barkindo, Opec’s secretary general. “The date of the next meeting will be decided later.”
One Saudi diplomat said the UAE’s views had set a precedent and now prices were rising as a result.
“We missed a good opportunity to support the market to reduce the temporary decline,” he said. “They [UAE] I have to go up the price of precious oil. ”
Brent crude oil, which is internationally known, rose to $ 77.09 a barrel, earning one percent to reach its highest level since 2018. The US West Texas Intermediate index rose to $ 76.20 a barrel.
“The suspension of the Opec + conference brings the market closer to August with no more barrels from the deal, which is why oil prices have just plummeted,” Louise Dickson told Rystad Energy.
Riyadh and Moscow have offered to increase production by 400,000 barrels per day from August to December and extend the Opec + agreement, which was approved last year, beyond the last day of April 2022.
While the UAE has said it supports economic growth, it has demanded that its initial production – which he calculates at a discount rate – which results in its largest output and enlightenment before agreeing to lift the deal.
Experts in the UAE say Saudi Arabia and Russia need more time to discuss Abu Dhabi, which has not changed.
“There is no delay,” said a Saudi and Russian official. “The UAE banned the election, so the conference has failed. The development groups will continue as they are.”
Oil prices have risen by 50% since the beginning of this year as demand has dropped from the depths of the epidemic, with vaccination programs that allow rich countries to reopen their doors.
Opec + reduced oil by about 10m barrels by the last day, about 10% needed for the epidemic, as consumption fell, and only gradually added to the market in recent months. The current wounds represent less than 6m b / d.
The analysts say the response to the UAE’s complaints about its origins is difficult because it could include a re-enactment of international demands, which could leave some of the major manufacturers – including Russia – a small part.
Representation has revealed escalating conflicts between Saudi Arabia and the UAE, traditionally allied both in Gulf politics and within Opec. The UAE has spent a lot of money to expand its oil production capacity in recent years.
Some researchers warn that the problems with the Opec + team could lead to more offerings if the contract is opened, leaving manufacturers without restrictions.
Last year Saudi Arabia increased its risk at the onset of the epidemic after Russia refused to participate in the initial cut-off, which exacerbated the fall in prices as restrictions and travel restrictions began to impede the need.
The deal to lose money last April was slightly disrupted by US President Donald Trump, who suspended a price-fixing war that disrupted the U.S. oil market.
Last week Biden officials said they were concerned about rising oil prices in recent months, with travel analysts seen as a signal to allies in the Gulf as well as Saudi Arabia and the UAE that they wanted to see results to cool the meeting.
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